Control activities: Control activities are more concerned about the protection of the resources of the company. They could be either Preventive Controls which aim to prevent the frauds or Detective Controls which aim at finding out the frauds which happened earlier. To State: Whether the answer for the given statements are true or false.

Question

Want to see the full answer?

Answer 1

Question

Chapter 4, Problem 4.3E

To determine

Control activities: Control activities are more concerned about the protection of the resources of the company. They could be either Preventive Controls which aim to prevent the frauds or Detective Controls which aim at finding out the frauds which happened earlier.

To State: Whether the answer for the given statements are true or false.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Below are several statements about internal controls.1. The components of internal control are built on the foundation of the ethical tone set by top management.2. Once every three months, managers need to review operations to ensure that control procedures work effectively.3. Collusion refers to the act of a single individual circumventing internal control procedures.4. Detective control procedures are designed to detect errors or fraud that have already occurred, while preventive control procedures are designed to keep errors or fraud from occurring in the first place.5. Fraud committed by top-level employees is more difficult to detect because those employees more often have the ability to override internal control features.6. A good example of separation of duties would be having one person collect cash from customers and account for it, while having another person order inventory and maintain control over it.7. Employee tips historically have been the most common means of…

The best way to enact a broad fraud prevention program is toa. Install airtight control systems of checks and supervision.b. Name an “ethics officer” who is responsible for receiving and acting on fraud tips.c. Place dedicated hotline telephones on walls around the workplace with direct communication to the company ethics officer.d. Practice management “of the people and for the people” to help them share personal and professional problems.

Segregation of Duties (SOD) is a basic building block of sustainable risk management and internal controls for a business. Which of the following statements is not a segregation of duties violation?A. The duties of Internal IT Developer of company is to write application programs and then perform required program maintenance when a problem occurs.B. The payroll administrator is distributing payroll checks to employees and recording cash receipts in the journal under supervision.C. The accounting clerk who recording cash receipts in the journal in the general ledger performs bank reconciliation to compare if there are any differences between cash transactions.D. The inventory warehouse clerk task is to maintain the inventory records with custody of physical assets inventory to manage asset identification, location and condition Explain why you choose your answer, and not the other (in max 200 words)